Pan American Silver (PAAS) AI Stock Analysis

• Market Cap: C$28.59B
• Dividend Yield: 0.96%
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 28.0
• Beta (1Y): 2.15
• Revenue Growth: 25.04%
• EPS Growth: N/A
• Country: CA
• Employees: 9,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Silver
• EPS (TTM): 0.67
• Shares Outstanding: 422,047,000
• 10 Day Avg. Volume: 1,033,801
• 30 Day Avg. Volume: 1,037,318
• PEG Ratio: -0.33
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 2.60
• P/FCF Ratio: 18.32
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$70.98
• Price Target Upside: 4.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 3.08
• Revenue Forecast (FY): C$4.93B

• Rating: 80 Outperform
• Price Target: C$71.00 ▲(4.80% Upside)

Pan American Silver's strong financial performance and positive earnings call are the most significant factors driving the high score. The company's strategic acquisitions and exploration successes further bolster its growth prospects. While the stock's valuation is on the higher side, the overall outlook remains positive.

Positive Factors

Revenue Growth

Pan American Silver's consistent revenue growth, surpassing expectations, indicates strong demand for its products and effective market strategies, supporting long-term financial stability.

Cash Generation

Strong cash flow generation enhances financial flexibility, allowing Pan American Silver to invest in growth opportunities and manage debt effectively, ensuring long-term operational resilience.

Strategic Acquisition

The acquisition of MAG Silver is poised to strengthen Pan American Silver's production capabilities and cost efficiencies, bolstering its competitive position and growth prospects.

Negative Factors

Operational Challenges

Operational challenges in gold production could impact profitability and growth, highlighting potential risks in meeting production targets and maintaining cost efficiency.

Geotechnical Issues

Geotechnical issues and negative grade reconciliation at key sites may lead to increased costs and production delays, affecting the company's operational efficiency and profitability.

Regulatory Delays

Ongoing regulatory delays at the Escobal mine could hinder production timelines and revenue generation, posing a risk to operational stability and growth.

Pan American Silver Business Overview & Revenue Model

Company Description

Pan American Silver Corp., together with its subsidiaries, engages in the exploration, mine development, extraction, processing, refining, and reclamation of silver, gold, zinc, lead, and copper mines in Canada, Mexico, Peru, Argentina, and Bolivia. It holds interests in the La Colorada, Dolores, Huaron, Morococha, Shahuindo, La Arena, Timmins West, Bell Creek, Manantial Espejo, San Vicente, Joaquin, Cap-Oeste Sur Este, and Navidad mines. The company was formerly known as Pan American Minerals Corp. and changed its name to Pan American Silver Corp. in April 1995. Pan American Silver Corp. was incorporated in 1979 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Pan American Silver generates revenue primarily through the sale of silver and gold, which are its core products. The company operates a diversified portfolio of mining assets, producing not only silver but also other metals such as copper, zinc, and lead. Revenue is significantly driven by the global market prices of these metals, with silver sales accounting for a substantial portion of total earnings. Additionally, Pan American Silver engages in strategic partnerships and joint ventures that allow for shared resources and expertise in mining operations. The company also benefits from cost management initiatives, operational efficiencies, and a focus on expanding its resource base through exploration projects, further enhancing its revenue potential.

Pan American Silver Financial Statement Overview

Summary

Pan American Silver demonstrates a solid financial position with strong revenue growth, improved profitability, and efficient cash generation. The company has managed to enhance its margins and returns while maintaining a conservative leverage profile. The financial statements reflect a positive outlook with potential for continued growth and stability.

Income Statement

Pan American Silver has shown strong revenue growth with a 4.21% increase in TTM compared to the previous year. The gross profit margin improved significantly to 28.39% in TTM from 19.46% in 2024, indicating better cost management. The net profit margin also increased to 16.77% in TTM, reflecting enhanced profitability. The EBIT and EBITDA margins have strengthened, showcasing operational efficiency. Overall, the income statement reflects a positive growth trajectory and improved profitability.

Balance Sheet

The company's debt-to-equity ratio remains low at 0.17 in TTM, indicating conservative leverage. Return on equity improved to 10.94% in TTM, showing better returns for shareholders. The equity ratio is stable, suggesting a strong equity base. The balance sheet reflects financial stability with manageable debt levels and improved shareholder returns.

Cash Flow

Operating cash flow increased significantly, with a strong operating cash flow to net income ratio of 1.52 in TTM, indicating robust cash generation. Free cash flow grew by 27.60% in TTM, enhancing financial flexibility. The free cash flow to net income ratio of 0.70 in TTM suggests efficient cash conversion. Overall, the cash flow statement shows strong cash generation and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.25B	2.82B	2.32B	1.49B	1.63B	1.34B
Gross Profit	1.02B	548.50M	214.60M	48.36M	367.94M	360.18M
EBITDA	1.52B	1.05B	476.80M	22.07M	554.87M	539.07M
Net Income	634.10M	111.50M	-103.70M	-340.06M	97.43M	177.88M
Balance Sheet
Total Assets	9.15B	7.20B	7.21B	3.25B	3.52B	3.43B
Cash, Cash Equivalents and Short-Term Investments	910.80M	887.30M	440.90M	142.34M	335.27M	279.06M
Total Debt	857.00M	803.30M	801.60M	226.84M	45.86M	33.56M
Total Liabilities	2.52B	2.49B	2.44B	1.05B	882.58M	828.04M
Stockholders Equity	6.62B	4.70B	4.76B	2.20B	2.63B	2.60B
Cash Flow
Free Cash Flow	746.10M	400.80M	71.20M	-242.78M	148.63M	283.76M
Operating Cash Flow	1.05B	724.10M	450.20M	31.91M	392.11M	462.31M
Investing Cash Flow	-380.80M	-32.60M	397.90M	-255.40M	-186.66M	-83.92M
Financing Cash Flow	-238.00M	-225.20M	-551.80M	52.97M	-85.91M	-329.59M

Pan American Silver Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 67.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PAAS, the sentiment is Positive. The current price of 67.75 is above the 20-day moving average (MA) of 61.56, above the 50-day MA of 55.71, and above the 200-day MA of 43.74, indicating a bullish trend. The MACD of 3.95 indicates Negative momentum. The RSI at 68.56 is Neutral, neither overbought nor oversold. The STOCH value of 67.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PAAS.

Pan American Silver Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAAS	80 Outperform	C$28.59B	28.00	11.27%	0.96%	25.04%	―
FVI	76 Outperform	$4.02B	12.33	15.63%	―	7.61%	915.74%
SVM	73 Outperform	C$2.60B	73.58	3.54%	0.29%	37.50%	-60.92%
AG	69 Neutral	C$11.07B	132.04	3.44%	0.13%	88.70%	―
AYA	66 Neutral	C$2.84B	1,180.95	0.71%	―	241.04%	-80.07%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
DSV	48 Neutral	C$7.08B	227.23	11.03%	―	―	―

Pan American Silver Corporate Events

Pan American Silver Expands Stake in Galleon Gold Through Strategic Acquisition

Pan American Silver Corp. has acquired 18,750,000 units of Galleon Gold Corp. as part of a private placement, marking a significant investment move. This acquisition positions Pan American to potentially increase its stake in Galleon, reflecting a strategic investment approach that could influence its market presence and stakeholder interests.

Pan American Silver Reports Updated Mineral Reserves and Resources

Pan American Silver Corp. announced its estimated mineral reserves and resources as of June 30, 2025, reporting significant quantities of silver and gold. The company’s exploration program at La Colorada has successfully replaced production and added new high-grade silver zones, enhancing the life of its operations. The recent acquisition of MAG Silver Corp. has not been included in this report, but it adds substantial interests in the Juanicipio silver mine and other projects, potentially impacting future resource estimates.

Pan American Silver Unveils High-Grade Discoveries at La Colorada Mine

Pan American Silver Corp. has announced the discovery of multiple high-grade silver zones at its La Colorada mine in Zacatecas, Mexico, as part of its ongoing exploration efforts. The new drill results indicate potential for significant expansion of silver mineral resources, which could extend the mine’s life and improve its economic viability. The discoveries, particularly in the San Geronimo and Cristina zones, highlight opportunities for further resource expansion and underscore the company’s strong positioning in the silver mining industry. This development is expected to have positive implications for the company’s operations and stakeholders.